Many companies are finalising or have completed increase and bonus processes and setting key performance indicators (KPIs) aligns with those processes. KPIs need to be current to keep employees engaged, motivated and challenged and to ensure business objectives are met.
The importance of KPIs:
Allow organisations to identify strengths and development areas of staff.
Highlight training needs.
Benchmark salary increases and incentives.
Develop team performance.
Motivate staff to achieve goals.
SMART is an acronym that refers to setting goals and objectives. It is a concept that was developed over 30 years ago to address the importance of objectives and the difficulty of setting them. SMART criteria may be used to set individual and business goals and is effective and easy to use when setting KPIs.
SPECIFIC (clearly defined)
MEASURABLE (what is being measured)
ACHIEVABLE (must be realistic)
RELEVANT (align with business goals)
TIME-BASED (when will the KPIs be achieved)
When setting KPIs:
– Ensure their is a clear understanding of expectations.
– Monitor KPIs regularly.
– Reward employees who meet and exceed expectations.
– Review KPIs regularly (to ensure they align with business objectives).
– It really is that easy! Just keep it simple.
